Creditsafe’s Prompt Payment Premier League, has revealed English Premier League Clubs have overdue invoices totalling £1.3million and 20% are late by 20 days or more beyond the agreed payment terms.
Manchester United who place 19th in the Prompt Payment Premier League have 63 outstanding invoices totalling £857,183, making up 66% of the total value of outstanding invoices owed by all Premier League clubs.
Despite having a combined annual turnover of more than £987million, Arsenal, Manchester City and Manchester United all pay their suppliers on average, 8 days slower than the Premier League average of 13 days beyond terms (DBT).
In comparison, 2 out of the 3 clubs who have been relegated this season – Hull City and Middlesbrough – were in the top 50% most prompt payers in the Premier League, paying in 10 days or less beyond agreed terms and have outstanding invoices to the value of less than £1,000.
Sunderland AFC, who finished bottom of the table in the 2017 season also find themselves at the foot of the Creditsafe Prompt Payment Premier League, paying its bills, on average, 25 days beyond agreed terms.
The most prompt payers of the Top Six clubs in the Premier League were, Tottenham Hotspur and Chelsea, paying their bills in 12 and 13 days beyond agreed terms respectively.
Noticeably, none of the Premier League Clubs pay businesses within the agreed payment terms. Middlesbrough and Swansea City topped the table for being the promptest paying football clubs in the Premier League, paying their bills just one day beyond agreed terms and 12 days under the industry average.
Rachel Mainwaring, Operations Director at Creditsafe UK said: “In recent years we have seen the emergence of a late payment culture in the UK. Even in the Premier League, with all the money that is available to its top clubs, late payment is rife. This is a problem for businesses dealing with the wealthy premier league clubs, who find themselves with a potentially dangerous financial shortfall.
“ it’s interesting to see that lower placing clubs pay their bills the fastest. In fact, excluding Sunderland, it’s the top ranking clubs of 2017, with turnovers over £250 million, that pay the latest and finish in the relegation zone of our alternative premier league table.”
It never ceases to amaze me how many clients are prepared to write off outstanding invoices rather than spend their time putting them on MoneyClaim online or paying a solicitor to issue proceedings.
Yet another one this week for just short of £2000.
My feelings are that if you are genuinely owed money for goods or services then never write it off until you have exhausted every avenue for payment.
I always recommend clients with debts under £5,000 to use Money Claim online. It’s a relatively simple process and cheaper than instructing a solicitor. Several of our clients have successfully used Money Claim online and got judgment for their debt. But a word of warning if your debt is over £600 then you are well advised to Transfer up the judgment to the High Court for enforcement. It is relatively inexpensive to do this currently I believe the court fee is £60 and there will be a fee for a High Court Enforcement Officer to execute the writ. These are the guys you see on the TV programmes. They are generally more effective than the county court bailiffs.
We are here if you need any help - but remember good credit control is key and most often you get an early warning that there may be a payment problem. That is when to act and hopefully resolve the problem with a client rather than go to law.
A somewhat poetic response to a very frustrating issue and an actual comment made to me by a client this week regarding yet another un-kept payment promise.